Fund closure - Threadneedle Absolute Return Bond Fund

<span>Columbia Threadneedle has announced that it will be closing its Absolute Return Bond Fund by way of liquidation on Friday 26 July 2019.</span>

Impacts on
these guided-architecture products

Impacts on
open architecture products including

PIMS
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Reason for the closure

Following a recent review, Columbia Threadneedle ("Threadneedle") has decided to close the fund due to its relatively small size (approximately £23 million as at 29 March 2019). The fund’s assets have fallen to a level which makes it economically unviable to manage and the fund manager considers the fund is unlikely to attract new investors. On this basis, it believes closure of the fund is in the best interests of investors.

Action to be taken for Open-architecture policyholders

Liquidation proceeds will be paid into the cash account on their policy. Policyholders can then choose to reinvest these proceeds into an acceptable asset of their choice. Should they wish to transfer holdings to another fund before the closure date we will require receipt of a dealing instruction by 5pm (UK time) on Monday 22 July 2019 (to ensure we meet Threadneedle's dealing cut-off) or if registered for online dealing, can instruct a deal online.

Action to be taken for Guided-architecture policyholders

We have now closed the fund to new business and switches in with immediate effect. Existing investors can continue to invest in the fund until 3pm (UK time) Monday 22 July 2019, at which point holdings will be automatically switched, and any regular premium allocation redirected, into the Invesco Sterling Bond Fund.

The Invesco Sterling Bond Fund is a diversified bond fund which, similarly to the closing fund, invests primarily in debt securities such as corporate and government bonds but may also use financial derivatives instruments to manage exposure to risks and currency movements.

We have written to our guided-architecture policyholders, or their appointed investment adviser, who are impacted by the closure informing them of the action we will be taking and their option for switching to a new fund if they prefer. Servicing financial advisers will receive a sample of the letter for their information.

Fund name	Product affected	Closure date	Closure action
Threadneedle Absolute Return Bond Retail Acc GBP - GB00B0L4TB44	Quantum, Oracle, Paragon, Quantum Malaysia, Regular Savings Plan, Regular Savings Plan Malaysia, Lifeplan & Protected Lifestyle.	Friday 26 July 2019	Holdings will be switched into Invesco Sterling Bond A Acc GBP - LU1775980979